---
title: "Here's Why Spotify Co-CEO Is Upbeat About AI-Generated Music Despite Growing Criticism"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/287609829.md"
description: "Spotify's stock rose after its Investor Day, where it announced an AI deal with Universal Music allowing subscribers to create covers and remixes. Co-CEO Alex Norström acknowledged criticism of AI-generated music but emphasized Spotify's unique approach, including artist verification tools. Despite competition, he remains optimistic about Spotify's future, with Wall Street rating SPOT stock as a Strong Buy and a price target suggesting a 15.5% upside."
datetime: "2026-05-26T09:01:40.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/287609829.md)
  - [en](https://longbridge.com/en/news/287609829.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/287609829.md)
---

# Here's Why Spotify Co-CEO Is Upbeat About AI-Generated Music Despite Growing Criticism

Last week, Spotify (SPOT) stock rallied after the music-streaming platform announced several updates at its first Investor Day since 2022. Investors mainly cheered the company's artificial intelligence (AI) deal with Universal Music (UMGNF), which will allow subscribers to create covers and remixes using the voices of artists and songwriters who opt in. In an interview with the _Financial Times_, Spotify co-CEO Alex Norström supported the company's foray into AI-generated music despite criticism by artists and listeners about increasing "AI slop" on digital platforms.

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## **Spotify Is Optimistic About Its Foray into AI-Generated Music**

Norström agreed that there is some negativity among artists and music lovers about AI. "I think it's reasonable because some of it is misaligned AI," noted the co-CEO.

Amid these concerns, Norström assured that Spotify's approach is different, backed by its licensing deals, recommendation systems, and artist verification tools. The co-CEO added that before striking a deal with Universal Music, the two companies had multiple discussions to ensure that it is a "win-win situation" for Spotify, artists, and rightsholders.

The deal comes at a time when artists and other professionals in the creative fields are concerned about AI overshadowing human work. Norström emphasized that Spotify is taking such fears into account. In this regard, the company launched a verification badge last month to help users distinguish authentic human artists from AI-generated content.

Aside from Spotify, Universal Music has inked licensing deals with several AI entities, including Udio, Klay Vision, and Stability AI. Despite intense competition from start-ups, Norström is confident about Spotify's prospects, thanks to its huge scale and relationships in the music industry.

## **Is SPOT Stock a Buy?**

Given robust initiatives and increasing monetization opportunities, Wall Street has a Strong Buy consensus rating on Spotify stock. The average SPOT stock price target of $600.17 indicates 15.5% upside potential. SPOT stock is down 18% year-to-date.

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